If Oil Industry Profits Are Up, Why Aren't Gas Prices Down?

[001GenLee]

Why aren't prices down?, 'cuz it's a money thing... If folks would stop driving gas guzzlers like Tahoes & such, and switch to Smart Cars & Yarises, etc.., that would make 'em think. I want a Smart Car, but why are they so expensive? I guess because of the gas mileage they get.

[ulty777]

So here in Canada the first time gas whent up to 1.00 liter ruffly 3.00 an amarican gallon the price was $100 amarican a barrel so why now that its at 77 a barrel its still ruffly 1.00 canadian or close to 3.00 amarican. can someone tell mr why? supply is greater now if the barrrel cost less right?

[wfran15]

Chevron Exxon and Conoco are all owned by the American people through managed money funds (pension, mutual etc.) It's not like a couple of people are reaping all of these billion dollar profits. Also Oil and Gas companies have some of the most mediocre margins of any sector out there. Yet you don't hear Congress screaming for a windfall profit tax on biotech companies who's margins are almost double that of the Oil and Gas industry?

[the0truth0hurts]

the fact that OPEC exists is demeaning to the term "free market". If you control supply, you control the price, because there will always be some demand for oil in the world.

[PsilocybinNinja]

Gee Peter, remember that old saying about oranges....

[minion00069]

so what now prices are down all of a sudden there is more oil..how about this our texas oil man president is a lame duck and all of a sudden price drop..think there is a connection?

[4449911]

If oil is dead dinosaurs - howcome we find oil under the ocean ? Science says the (granite) continents are 5B yrs old and (basalt) ocean floors are 65M to 0yrs old. We aren't being given the full picture. What is oil ? How do we know the estimates (used to jack the price) are correct ? It's price-fixing and junk science. The Earth accretes oil (like water) and the oil industry "estimates" are deliberately flawed. Why ? I can think of hundreds of billions of reasons why.

[PsilocybinNinja]

I'm not an expert but I know a little about how oil is formed. Prehistoric Zooplankton and and algae would settle to the bottom of lakes and die. Then sediment would form over it and over time it would compress and heat and a chemical reaction causes the fossilized remains to turn into the prerequisite to oil. Then volcanic and tectonic activity first creates oil, then tectonic shifts can move pockets of oil to different depths, sometimes under the ocean or in tar sands. Hope that helps...

[4449911]

After 120yrs of an oil-based economy I'm not sure I could believe any theory - good news or bad news. (the same thing happened with organized religion)

ANY theory backed by industry (with vested interests in the outcome) should be suspect. Exxon would never go public and say, "oil accretes and we'll never run out".

I come from a back-water corner of science (cartography) and I think the current theory is too self-serving or industry-friendly. It's falsifiable and not verifiable enough.

[PsilocybinNinja]

Cool man you seem to know best :)

[4449911]

I'm always interested in upgrading my information !

[minion00069]

can u lie thru ur teeth any harder..lieing fuck

[Givincer]

What an insightful response...

[Krazede]

He's full of SHIT, Notice that this event is sponsered by Chevron oil.

[Givincer]

If he's full of shit, and supply isn't constrained (which it undoubtedly is...), then where is the indictment against the oil companies for price-gouging? You know there'd be one if there was grounds for one. Their profit margin is 8-10%, Google's is 25%

[the0truth0hurts]

Google provides advertising. There are literally thousands of alternatives to google. Does google have a cartel regulating the amount of advertising they produce to keep the price high? NO!

I have never bought anything from google. How much have I spent on gas in my life? A fucking shit load. What alternatives do I have to fuel my car? NONE! 10% of 400+ billion dollars is way more than google's profits, and the oil companies have no competition, they all win! And this is a "free market"? BULL!

[GenerationX1984]

We'd all be driving hybrids and other more efficient cars by now if the oil companies didn't pay people off who make these kinds of cars. Bottom line is that oil companies are just plain greedy. The oil companies give money to oil producing countries like Saudi Arabia. Countries that hate us. It's the oil companies that are puting our security at risk when giving money to these countries. There was a man in California who ended up missing after trying to invent a better carborator.

[Srd1126]

No rational person should be driving a hybrid. Payoff is like 100K miles and much envrionmental damage done making the batteries.

Oil companies are not "greedy" as making the highest possible profit is the job of the CEO and management. If you think gas costs too much, don't buy any.

[the0truth0hurts]

You are missing the point. People buy hybrids for many reason, and the cost is not one of them. They are reasons like reducing carbon pollution, making the world a safer, healthier place, being able to utilize the carpool lane without any passengers, and yes, getting 50MPG is not bad. If it was all about money, there would be no green energy movement. Yes, the batteries are the catch22, but that is new technology that needs time to mature.

[Srd1126]

I maintain that Hybrida are a "style statement" like wearing an AIDS Ribbon. It doesn't do anything in reality, but the wearer (driver) feels good.

[the0truth0hurts]

That's pretty low calling support for curing AIDS a "style statement". Might as well just call human compassion and world peace a "style statement" too. Do you think making money takes precedent over protecting our environment? That is the problem we need to fix!

[Srd1126]

If you just walk around wearing a ribbon to say "I care" I will call it what it is--a style statement. No one is "in favor" of AIDS.

You have to define on making money taking precedence over the envrioment. But the way most envrionmental types act, I believe the timber, oil, etc. companies know more about good envrionmental practices than Al Gore for example.

"Envrionmentalism" has become a religion for atheists.

[the0truth0hurts]

I don't know a single person who just walks around wearing a ribbon for AIDS. I do know plenty of people who wear AIDS ribbons because they know someone who has AIDS or has died from AIDS. Are they making a "style statement"?

You are crazy to think that huge corporations like timber and oil spend money willingly to protect the environment and consumers. They fight tooth and nail all regulations. Oil companies pay more in fines every year than most companies profit. Al Gore is a Christian, btw.

[Srd1126]

Look at all the celebs who wear ribbons and are "against AIDS" yet don't come out and say homosexuality is a bad choice as is sharing needles. I call that wearing it as a style statement,

TImber companies do lots to preserve forests as that is their future. And look at how the oil companies built the AK pipeline to be envrionmentally friendly. They fight stupid regulations of which there are plenty, but not all of them.

BTW: I just consider Algore a hypocrite above all else.

[the0truth0hurts]

AIDS is a disease that affects more than homosexuals and drug users. You can get AIDS from unprotected sex in general, even oral sex, blood transfusions, and babies can be infected by their mothers, in a number of ways.

Timber companies do a lot now, after the government has imposed heavy regulation. Oils companies have responsibility than just build a nice pipeline. There are ways to extract oil that are cleaner and safer to the environment, but oil companies are not interested. Its a fact!

[Srd1126]

AIDS is still mostly a gay and drug-user disease. The gay lobby wants more funding for it so they make out like heterosexuals are catching it in great numbers. The government funding on it would be better spent on heart disease which kills far more and is harder to prevent.

Oil companys do plenty but get no credit from enviro-whackos who drive to rallies and think gas comes from the gas station.

[the0truth0hurts]

The gay lobby? I'm pretty sure there is no such thing. Lobbying takes a lot of money, so only huge corporations can afford to lobby. Nice try on that one.

If AIDS is so easy to prevent, then what's the problem with people wearing ribbons? It seems that awareness is the most important side of the battle. Saying heart disease is much harder to prevent is misleading when to two biggest causes are obesity and smoking.

[Srd1126]

the gay lobby is out there--put something in public against homosexuality and see what happens.

the problem with wearing ribbons, for the second time, is instead of saying "I care" they should say "don't have gay sex--it is a way to catch AIDS,"

Heart disease has a major hereditary component, unlike AIDS which as none. Nice try on that one.

[the0truth0hurts]

Do you even know what lobbying is? It's paying people BIG money to influence government legislation. It doesn't have anything to do with the public or putting things in the public. The public doesn't even get to vote on these things. The public elects representatives to make all these decisions for them and the lobbyists are paid to influence these elected representatives. What's the best way to influence someone? MONEY!!!!! We have only recently started regulating lobbyists and that industry.

[Srd1126]

no, lobbying is trying to influence the your legislature. it does not have to include "big" money. I was on an industry board that paid a lobbyist. We had maybe $15K/yr to spend for a whole state of companies. Is that BIG MONEY?

There are other ways to influence. Look at the patriotic Americans in the Tea Party Movement and also going to town hall meetings to speak their mind.

So I'll say it again--let a public fiugure say/do something against homosexuality and see what happens.

[the0truth0hurts]

Your efforts at lobbying and spending 15K will do nothing up against multibillion dollar companies. I laugh at your comparison. In 2005 over 2 billion dollars was spent lobbying the government.

The whole anti-tax tea party charade was a joke. And what did it accomplish? NOTHING! Town hall meetings have little affects in influencing something that is being lobbied by huge corporations. It a plain fact.

You really have no clue how politics works. It all revolves around MONEY!

[Srd1126]

You need to watch a more fair and balanced news progtam. The tea parties have started a MOVEMENT. And if you haven't noticed, despite heavy spending by big labor and other socialists, support for Obamacare is falling like a rock, along with his approval ratings.

[the0truth0hurts]

By your logic, we should also have ribbons that say, "don't have heterosexual sex--its a way to catch AIDS" or "don't have a mother who has AIDS--its a way to catch AIDS" or "don't share needles with your diabetic friends--its a way to catch AIDS". Although all these statements, including yours are technically true, they confuse more than educate. The reason someone wears any ribbon is because they just donated a $1 to help. I guess you've never donated a $1 to anything or you would know this.

[the0truth0hurts]

The hereditary component is not a major one. Even a person with 1st degree relatives who had heart disease before 45 in males & 55 in females can greatly reduce their risk of heart disease by maintaining a healthy lifestyle. But the problem is it's almost impossible to have a healthy lifestyle with tobacco companies lobbying the government for as long as they have. & our foods have become unhealthy to improve shelflife and profit at expense of nutrition&safety. Research Food inc /Poison Waters

[Srd1126]

Point is the hereditary factor is there in heart disease and not in ADIS. Also the links of failure to "live healthy" are nowhere near as strong in heart disease as what to avoid in AIDS.

I must say I feel sorry for you if you are so weak minded that a cigarette commercial will make you smoke and you have failed to take asvantage of all the money the government spends to educate you on healthy eating.

[the0truth0hurts]

Your arguments don't even make sense. If the problem is hereditary, then there is nothing we can do about it short from changing our genetics. So you must be pro stem cell and genetic research, because if the problem is hereditary like you say, then that is the only solution. So what exactly is your point?

Don't feel sorry for me, I don't smoke cigarettes. Not sure why you think I do. But I guess making things up is natural to you like this gay lobby you keep talking about. oneday you'll see.

[Srd1126]

Plenty of things out there are heredetary yet can be treated, Adult stem-cell research has had breakthrus, but embryonic has done nothing but put California deeper in debt.

Nothing made up about the gay-lobby. Ask Miss California what happens when you make a remarl they don't like.

[jsmith31451]

FUCKIN LIAR!!!

[stripperboy1952]

b.s is fo sho

[FUCKYOURGODINTHEASS]

...I've heard stories of "big oil" hiding flotillas of oil barges out on the ocean. Kind of like how the diamond industry keeps their artificial price structure by buying up diamonds to keep them off the market.Just a thought...

[sophiemarie49]

What a lot of b.s.

[wrx831]

This guy has no legitimate answer whatsoever. He's basically just saying "Because we can"

[sprmn81]

I agree. There is something VERY SUSPICIOUS about what is going on with the OIL INDUSTRY. I think a Criminal Investigation needs to take place because close to $4.57/gallon is a joke. I am so angry about the whole thing. 11 gallons of gas cost me $50. Back in 2001, the same amount cost me somewhere between $16.50-$17.00.

[gian15]

It is obvious that he isn't telling the complete truth. The problem with this company is the fact that they WANT prices do be high, it's better for them. Greed is destructive.

We need to revolutionize our means of transportation.

[kc5deb]

How about all you people who want to invest in alternative energy, use YOUR profits to do so? How would you like it if the government came into your place of business, and forced you to reinvest your profits according to how the government felt it needed to?

[whwatson89]

hey fuck how would you like to have your house to pay for fucking gas you dumbass something has to be done or that will start happening

[kc5deb]

It's not the job the US government to set oil/gas prices. Now, in Venezuela... it IS the government's job to set the prices, since it owns the oil. If you want cheap gas? Move to Venezuala or Saudi Arabia.

I'm just as pissed as you are about the price of gas, but, I recognize that the government is 1/2 the damned reason it's so high!

[WJUStudent]

I think we can blame some of the environmentalists as well. The oil companies are willing to drill in the gulf, and in Alaska, use shale oil in Colorado, or coal gasification [actually used by the Nazi's to make gas from coal during WWII] and yet these environmentalists sue each and every time to stop a new well or new refinery, we need more oil WHILE searching for alternatives

[glasson65]

There is no "shortage" they (oil co's) control the supply of gas. The "shortage" is manufactured by the oil co's. The bottom line is the oil companies are the GREEDIEST people on earth. They wan't all the money in the world and will probably keep raising prices until they have it. Wait until the winter when people ahve to purchase heating oil! Are only hope is if someone can develop a vehicle that does not use gas, and hopefully will not be bought out by these greedy assholes!

[WJUStudent]

actually OPEC controls the supply of gas, and unfortunately OPEC is run by political leaders in the middle east that HATE us. Iranian president is encouraging OPEC to sell oil at $200 a barrel!

[dmeckle]

thats the best this guy has "its like oranges"--no its like getting humped in the butt

[cocacola443]

If we've hit peak production for the world, we're in trouble. Demand will continue to increase, but production will level off and eventually decrease, resulting in very high price volatility for crude. The high price of crude (in dollars) is explained by both supply and demand, and the devaluation of the dollar.

Even a true monopoly cannot charge whatever it wants...they'll actually lose potential profit above a certain price, due to people no longer using their product. Stop using oil!

[cocacola443]

If they cut prices, demand will increase, and there WILL be shortages. This is what happened in 1973 and 1979 when the gov't imposed price caps on gas.

If the price gets high enough, the oil companies will begin to lose money, because people will not just complain...they'll quit using oil. Exploration is at an all-time high because of current prices.

Look up Hubbard peak oil theory. U.S. production peaked in 1970. Many countries have peaked in the past 10 or 20 years.

[fookingkoont]

total BS. they have already figured in what they are going to invest. that is where the biggest lie is. profit is profit. they budget in what they plan to spend for pillaging and plundering new parts of the world.

[scorpiometaldog]

Peter Robertson you are a liar! And your attempts at diversion from the truth of your greed which is stealing absurd amounts of money out of we the American peoples lives! To make yourself obsese! You are disgusting! Shame to hell on you, you lying scum!

[OhFishyFish]

If you feel being ripped off, what should Europeans say? Americans pay 0.39$ per liter while in the UK same amount of petrol is 1.20$/l and still rising. Yes, it is 3 times more, so you're not really in the position of poor victims of oil industry right now..

[stanbernadino]

Ya because the european government puts huge taxes on gas, that's why it's 1.20 a liter.  Our cars get 15 mpg and Euro cars get about 50 so in reality we are paying about the same amount.

[OhFishyFish]

That's true but still we are the ones who has to pay extra. UK (with highest tax on petrol in whole europe) isn't in so bad situation as amount of petrol you can get for an hour of work is still great compared to my home country (Poland). There when working for average salary, you'd get about 2 liters for hour of work, this is just insane.

[alieco]

if you invest what you make no wonder why the price of gas isnt better lol

[snake99899]

the only reason why they are driving prices up is because they have their investments but are investing in technology that they can monopolize on once we are ready to not become dependent on oil. in other words, screwing with our wallets in order to ensure that their companies last for the next 50 years. fuck them.

[Blitzkrieg1981]

there are a lot of theories, I think yours is right on the money. They could make money if gas was 2.00$ p/gallon. Think of how much they are making right now. I agree completely. There are a lot of logical explainations, but a few devious ones which fit just perfectly. Takes a lot of balls to screw millions of people.

[EasyEs]

Or they didn't make much money in the 90s so they now need to re-invest into new reserves so we actually have oil. Deep water wells are 120 million a pop you feel like fronting that kinda cash.

[5410driver]

Excuse me Mr oil man 7,000 Feet dont no way in hell equal 5 miles , Theirs 5,280 feet in a mile u jackass

[cocacola443]

Wow, very impressive. Watch the video again. He says there is "7,000 feet of WATER...that's the WATER before you even start drilling for

the oil", and then you go another 5 miles.

Try learning to spell and form complete sentences. It helps your credibility. Now go back to your crayons.

[stodgy4488]

Want to know why oil prices are so high... it's because of your beloved taxes, why hate someone sooo much for making money? And if we didnt have oil we wouldnt have an economy at all. its called inflation, turn off CNN and chill.

crazy people please dont reply.

[BellaDesigner]

4Q AHOLE!!!

[swalker711]

Lier - we have been listening to his BS for sometime now. How do they sleep at night. Kick down the people and no one will stand.

[SB5332]

the oil companies have screwed up the economy

20 dollars is now the new 5

[jhmorgan0951]

The oil companies have single handedly brought us the looming slow down in the American economy, which might lead to an American recession. I've heard talk of a global recession. Oil and gas prices have driven the price of EVERYTHING in the nation up. These people are shameless in their greed, and with their pockets bulging are laughing all the way to the bank. They haven't build a new gasoline refinery in 30 years, and during that time have closed 150 refineries.

[16sag7]

For get about oil. The technology is here to run homes and vehicle of pure electricity but these large companies do whatever they can to stop new invention that will make oil obsolete. Their is evil in this world that stops good things for the consumer and one of the evils are big oil producers.

[DiamondBBW]

It's sick to hear any one could be proud of such greed. It's nothing more than a money driven bunch of bull. I would love for all those men to be forced to live off a normal blue collar pay check for one year and have to pay the bills we pay while trying to Just by gas to get from work to home and maybe to a grocery store if you're lucky!

[krelbar]

Invest in refineries around the world? How about here? Repair the antiquated ones and build new ones here!

[P4k4er]

Proud of what contribution. Contribution of pollution and slavery to the world. cars running of water or nothing all around us, get the community talking.

[P4k4er]

We can do this, get excited, theirs big people involved doing good things. Got off world presence watching. Lets stop making a piece of paper backed buy nothing to purchse things with it that we can now get for free. Free energy.

[hidesinbrackishwater]

Deep water is right-

The oil giants will have reason to leave once we master our compulsive habits- driving to the corner for a thirst buster in between commercials. Damn. I've tried stopping my own compulsions with little or no effect. Im pratically hard wired to the empire! It might be like cutting off a limb!

[YadaYadaguy]

this is a sick story to learn more check out the old story of the New World Order.then it all makes sense mind control,fear,yadayada some things are a bit out there but most of it makes complete sense.They keep us so tired we cant think.But take a nap and think about it.

[Corporations8MyBaby]

This answer makes no sense to me. Lehrer didn't ask him about operating costs or even investment costs... he asked him about PROFIT. And as long as American Troops are dying in oil wars, this profit is closer to profiteering. The human-monkey really is suceptible to unbelievable greed and opportunism. I also know that many of us have wisdom and generosity. We need to wake up and regulate these oil-monkeys.

[pokemon20035150]

I agree the vocabulary needs to change to describe these great differences better. The field of economics needs to increase it's vocab in general too. I was always bothered by this in my college econ classes. Language can cover up a lot.

[laurenxxx69]

RON PAUL 2008! Wake up America!

[Theobrothers]

It's great how his example of Orange juice shows that they are raising pricing MERELY to gain more money personally not out of necessity to break even. He tried hard to sidestep the issue, which wasn't asked very intelligently, but still fell all over himself, lol.

[envyjealous]

GREEDY Zionists BASTARDS = GENOCIDE

- Faces and minds of Evil

[sprmn81]

There is always someone on you tube like yourself who likes to start World War III. You are all talk, ha ha ha!!! You ARE a POCKET PROTECTING NERD trying to be tough! Take it to my face you ANTISEMITIC PUNK!!!

[edbrown100]

What they invest in is irrelevant to price gouging.Although China is growing, supply is not constrained as we've just opened up more fields in Iraq. This conversation is like asking Wolfowitz to explain how he could ask for a 'new Pearl Harbor' and still be a patriot. If prices are up because of costs, then costs would take a toll on record profits. Multi-nationals are criminals. Asking common sense questions is pointless. I'm sure Enron could've defended itself before it was found out.

[cemott3rd]

When I lived in VietNam 2 years ago the Chinese State news reported that they would not import oil as long as the price was above $60 a barrel. At that price it was better for them to produce the oil from their own fields than import it at a higher price. BTW I believe China is the #2 oil producer in the world after Russia, Saudi is just the largest exporter.....more semantics ;)

[1oneundergod1]

oil is bought in advance [the daily price means nothing]oil is a dirty buisness, the further from the ground it gets the more dirty the oil game, when it gets to the white collars it becomes white collar crime, the frost really hit the oil yesterday, we need more refinors of oil, that will [must] compete to independant communal outlets

[Rickdeckard2020]

'that will [must] compete'

the problem is illustrated by FutureShop and Best Buy, two very different electronic store which one might think are competing when one next to the other, when they are in fact owned by the same people. If the major share holders of refineries are from the same privatge club chances are there wont be much competition, its more an Oligarchy

[Rickdeckard2020]

They know no one believes their mountain of bull, but they just cant say straight up 'Were profiteering and squeezing your wallet for all its worth'.

Anyone who still hasnt seen 'Who killed the electric car?' should look it up on google

[reivilo]

what the hell is this about... there has been a surplus of crude oil for a lil over 2 years?!?!? This is the worst use of jargon to confuse people. "investment" "mutal fund" "market"?!?! why not just say "red" "blue" and "green" i mean can you be more vague?

[Deztitute]

You know... all that money could be spent on avoiding the need for oil.

[pokemon20035150]

yes, yes, yes.